“dealer” means a person engaged in the business of buying grain from producers or in selling grain on behalf of producers; (“marchand”)

“deferred payment arrangement” means an arrangement between a producer and a dealer in which title to grain passes from the producer to the dealer, the price for the grain is agreed to, and the payment of the sale price is deferred until a date agreed to by the producer and the dealer; (“arrangement de paiement différé”)

“delayed price contract” means a sales contract between a producer and a dealer in which title to grain passes from the producer to the dealer and the final price for all or part of the grain is determined at a later date by any means, including on a basis; (“contrat de prix différé”)

“Fund” means a fund continued under section 3; (“Fonds”)

“grain” means canola, grain corn, soybean and wheat; (“grain”)

“grain corn” does not include popping corn, seed corn or sweet corn; (“maïs-grain”)

“licence”,

(a) in respect of a licence held by a dealer, means a licence to engage in business as a dealer under the Grains Act, and

(b) in respect of a licence held by an operator, means a licence to engage in business as a grain elevator operator under the Grains Act; (“permis”)

“operator” means a grain elevator operator within the meaning of the Grains Act; (“exploitant”)

“producer” means a person engaged in the production of grain. (“producteur”)

3. (1) The fund for producers of canola, known as the Fund for Canola Producers, is continued.

(2) The fund for producers of grain corn, known as the Fund for Grain Corn Producers, is continued.

(3) The fund for producers of soybeans, known as the Fund for Soybeans, is continued as the Fund for Soybean Producers.

(4) The fund for producers of wheat, known as the Fund for Wheat Producers, is continued.

Board continued

4. (1) The board known as the Grain Financial Protection Board is continued to administer the funds set out in section 3.

(2) The Board shall have no fewer than five members, and the Minister may designate one member of the Board as chair and one or more members of the Board as vice-chair.

Payment for Grains

Time of payment for sale of grain

5. (1) If a producer sells grain to a dealer under a delayed price contract, the dealer shall pay the sale price to the producer,

(a) for the percentage of the market price payable on account,

(i) subject to subsection (3), if the grain is sold from storage as that term is defined in the Grains Act, no later than 2 p.m. on the fifth trading day after the day of sale, and

(ii) if the grain is not sold from storage as that term is defined in the Grains Act, within 10 trading days after the day on which the grain is delivered to the purchaser; and

(b) for the balance of the amount unpaid after payment on account, on the day on which the producer prices the grain to close out the contract.

(2) If a producer sells grain to a dealer, but not under a delayed price contract, the dealer shall pay the sale price to the producer,

(a) subject to subsection (3), if the grain is sold from storage as that term is defined in the Grains Act, no later than 2 p.m. on the fifth trading day after the day of sale; and

(b) if the grain is not sold from storage as that term is defined in the Grains Act, within 10 trading days after the day on which the grain is delivered to the dealer.

(3) If grain is sold as provided in subsection 18 (3) of the Grains Act and is subject to a deferred payment arrangement, subclause (1) (a) (i) and clause (2) (a) do not apply and payment shall be made on the date or dates agreed to.

(4) If a producer has not priced grain to close out a delayed price contract on or before the first day on which grounds arose for the producer to make a claim for payment from a Fund under section 3 of the Act, the contract is considered to be closed out on that day.

Duty to Notify Chief Inspector

Duty to notify chief inspector

6. (1) A producer shall promptly notify the chief inspector if,

(a) the producer has not received payment in accordance with section 5 from the dealer to whom the producer has sold grain;

(b) the producer has reason to believe that the dealer to whom the producer has sold grain has ceased to carry on business; or

(c) the producer has reason to believe that,

(i) any of the assets of the dealer to whom the producer has sold grain have been placed in the hands of a trustee for distribution under the Bankruptcy and Insolvency Act (Canada) or the Bulk Sales Act or in the hands of a receiver pursuant to a debenture or similar instrument, or

(ii) the dealer to whom the producer has sold grain has made a proposal under the Bankruptcy and Insolvency Act (Canada) or the Companies’ Creditors Arrangement Act (Canada).

(2) An owner of grain shall promptly notify the chief inspector if,

(a) an operator who is storing grain on the owner’s behalf fails to deliver any of the grain on demand;

(b) the owner has reason to believe that an operator who is storing grain on the owner’s behalf has ceased to carry on business; or

(c) the owner of the grain has reason to believe that,

(i) any of the assets of the operator who is storing grain on the owner’s behalf have been placed in the hands of a trustee for distribution under the Bankruptcy and Insolvency Act (Canada) or the Bulk Sales Act or in the hands of a receiver pursuant to a debenture or similar instrument, or

(ii) the operator who is storing grain on the owner’s behalf has made a proposal under the Bankruptcy and Insolvency Act (Canada) or the Companies’ Creditors Arrangement Act (Canada).

Claims for Payments from Funds

Payment from appropriate Fund

7. Payments made by the Board in accordance with this Regulation shall be made from the Fund that corresponds to the type of grain in respect of which the claim is made.

Additional grounds for claims

8. In addition to the grounds described in subsection 3 (1) of the Act, a producer may apply to the Board claiming payment from a Fund if,

(a) the dealer to whom the producer sold grain has ceased to carry on business; or

(b) the whole or any part of the assets of a dealer who has purchased grain from the producer have been placed in the hands of a receiver pursuant to a debenture or like instrument.

Form of application

9. (1) An application to the Board claiming payment from a Fund shall be in a form satisfactory to the Board.

(2) A producer claiming payment from a Fund shall make a separate application in respect of each dealer in respect of whom the producer has a claim.

(3) An owner claiming payment from a Fund shall make a separate application in respect of each operator in respect of whom the owner has a claim.

(4) No person shall apply to the Board claiming payment from a Fund later than 30 days after the first day on which grounds for making the claim arose.

Notice of application

10. On receiving an application under section 9, the Board shall give written notice of the application by registered mail, courier or facsimile transmission to the dealer or operator in respect of whom the claim is made and shall give the chief inspector a copy of the notice.

Assessment of claim

11. (1) The Board may refuse to pay a claim for payment from a Fund if,

(a) subject to subsection (2), the applicant makes the claim in respect of a dealer who is not a licensed dealer or an operator who is not a licensed operator;

(b) subject to subsection (3), the applicant did not apply to the Board within the time period specified in subsection 9 (4);

(c) the applicant is a producer, but not the producer of the grain in respect of which the claim is made;

(d) the applicant is a producer who receives a cheque from the dealer that is dishonoured by non-acceptance or non-payment but the applicant did not present the cheque for payment within five banking days of the date the cheque is made payable;

(e) the applicant is a producer who sells grain to a dealer under a delayed price contract but the contract is not in writing and is not signed by both the producer and the dealer;

(f) the applicant is a producer who sells grain to a dealer under a deferred payment arrangement but the arrangement is not set out in writing or, if it is set out in writing, it does not contain the following information:

(i) the date on which the deferred payment arrangement was entered into,

(ii) the date or dates on which payment is to be made, and

(iii) the amount of each payment and the total amount of all payments;

(g) the applicant has failed to notify the chief inspector in accordance with section 6; or

(h) the following conditions are met:

(i) the applicant is associated in any way with the dealer or operator in respect of whom the applicant makes the claim,

(ii) the conduct of the applicant or, if the applicant is a corporation, the conduct of an officer or director of the applicant or a person having power to direct the management of the applicant, caused,

(A) the dealer to default in paying the sale price, if the claim is in respect of a dealer, or

(B) the operator to fail to deliver the grain, if the claim is in respect of an operator, and

(iii) in the circumstances, it would be inequitable to make a payment from the Fund.

(2) The Board may pay the claim if,

(a) the claim is made in respect of grain sold to a dealer or stored by an operator;

(b) the licence of the dealer or operator, as the case may be, was suspended, revoked or expired at the time of the sale or storage; and

(c) the applicant was unaware of the suspension, revocation or expiry of the licence.

(3) Despite subsection 9 (4), the Board may pay the claim if the applicant applies for payment as soon as practicable after the expiry of the 30-day period mentioned in that subsection and if the Board considers it proper in the circumstances to do so.

Limits on payments from Fund

12. (1) Subject to subsections (2) and (3), the amount that the Board may pay out of a Fund to an applicant on any one application is,

(a) in the case of a claim made by an owner under subsection 3 (2) of the Act, 95 per cent of the market value of the grain in respect of which the claim is made on the day on which the grounds for making the claim arose;

(b) in the case of a claim made by a producer for grain sold under a delayed price contract, 95 per cent of the market price payable on the day the contract is closed out or considered to be closed out, less the greater of,

(i) 60 per cent of the market price of the grain on the day payment was made on account, and

(ii) 60 per cent of the market price of the grain on the day the contract is closed out or considered to be closed out;

(c) in the case of a claim made by an applicant mentioned in subsection (4), 95 per cent of the amount determined in accordance with subsections (4) and (5); and

(d) subject to section 13, in all cases not covered by clauses (a) to (c), 95 per cent of the amount of the claim.

(2) In the case of a claim made in respect of a deferred payment arrangement for grain that is sold from storage as that term is defined in the Grains Act,

(a) if the payment or a portion of it is deferred by 1 to 45 calendar days after the fifth trading day following the day of sale, 50 per cent of the eligible claim as determined under subsection (1) in respect of the payment or portion;

(b) if the payment or a portion of it is deferred by 46 to 90 calendar days after the fifth trading day following the day of sale, 40 per cent of the eligible claim as determined under subsection (1) in respect of the payment or portion;

(c) if the payment or a portion of it is deferred by 91 to 135 calendar days after the fifth trading day following the day of sale, 30 per cent of the eligible claim as determined under subsection (1) in respect of the payment or portion; and

(d) if the payment or a portion of it is deferred by 136 to 180 calendar days after the fifth trading day following the day of sale, 20 per cent of the eligible claim as determined under subsection (1) in respect of the payment or portion.

(3) In the case of a claim made in respect of a deferred payment arrangement for grain that is not sold from storage as that term is defined in the Grains Act,

(a) if the payment or a portion of it is deferred by 1 to 45 calendar days after the tenth trading day following the day of sale, 50 per cent of the eligible claim as determined under subsection (1) in respect of the payment or portion;

(b) if the payment or a portion of it is deferred by 46 to 90 calendar days after the tenth trading day following the day of sale, 40 per cent of the eligible claim as determined under subsection (1) in respect of the payment or portion;

(c) if the payment or a portion of it is deferred by 91 to 135 calendar days after the tenth trading day following the day of sale, 30 per cent of the eligible claim as determined under subsection (1) in respect of the payment or portion; and

(d) if the payment or a portion of it is deferred by 136 to 180 calendar days after the tenth trading day following the day of sale, 20 per cent of the eligible claim as determined under subsection (1) in respect of the payment or portion.

(4) The limit set out in clause (1) (c) and determined in accordance with subsection (5) applies if the applicant is one of the following:

1. A producer who holds a licence as a dealer and who has purchased grain before the day on which the grounds for making the claim arose.

2. An owner who holds a licence as an operator and who has stored grain for other owners before the day on which the grounds for making the claim arose.

(5) If a claim is made by an applicant mentioned in subsection (4), the amount of grain in respect of which the Board may pay an applicant’s claim out of a Fund shall not exceed the percentage calculated in accordance with the following rules:

1. Determine the amount of grain produced by the applicant in the capacity of a producer (in the case of an applicant described in paragraph 1 of subsection (4)) or the amount of grain owned and stored by the applicant in the joint capacity of an owner and operator (in the case of an applicant described in paragraph 2 of subsection (4)).

2. Add the amount of grain purchased by the applicant in the capacity of a dealer (in the case of an applicant described in paragraph 1 of subsection (4)) or stored by the applicant in the capacity of an operator (in the case of an applicant described in paragraph 2 of subsection (4)) to the amount determined under paragraph 1.

3. Divide the amount in paragraph 1 by the amount in paragraph 2.

(6) In addition to the amount paid under subsection (1), the Board may pay out of the Fund to the applicant the amount that the applicant was required to pay in respect of the grain under the Advance Payments for Crops Act (Canada) or the Agricultural Products Marketing Act (Canada), as the case may be, as a result of,

(a) the default of a dealer to make payment to the applicant, in the case of a claim made by a producer under subsection 3 (1) of the Act; or

(b) the default of an operator to deliver the grain to the owner, in the case of a claim made by an owner under subsection 3 (2) of the Act.

No payment from Fund

13. The Board shall refuse to make payments in respect of a claim made in respect of a deferred payment arrangement,

(a) in the case of a claim for grain that is sold from storage as that term is defined in the Grains Act, if payment is deferred by more than 180 calendar days after the fifth trading day following the day of sale; and

(b) in the case of a claim for grain that is not sold from storage as that term is defined in the Grains Act, if payment is deferred by more than 180 calendar days after the tenth trading day following the day of sale.

Determination and notice

14. (1) The Board shall only pay a claim for payment from a Fund if it determines that the claim is valid.

(2) If the Board pays a claim, it shall give notice by registered mail, courier or facsimile transmission to the applicant and to the dealer or operator in respect of whom the claim is made that the claim has been paid and the amount of the payment.

(3) If the Board refuses to pay a claim, it shall give notice of the refusal by registered mail, courier or facsimile transmission to the applicant and to the dealer or operator in respect of whom the claim is made.

(4) The Board shall give the chief inspector a copy of the notice provided under subsection (2) or (3).

Dealer or operator to pay Board

15. (1) If the Board makes a payment from a Fund, the dealer or operator against whom the claim for payment was made shall reimburse the Fund by paying to the Board the amount paid out of the Fund on account of the claim.

(2) Payment by the dealer or operator may be made in a single payment or according to a payment schedule approved by the Board.

(3) The Board shall deposit the amounts paid to it under this section into the Fund from which the Board made payment.

Revocations and Commencement

Revocations

16. The following Regulations are revoked:

1. Regulation 447 of the Revised Regulations of Ontario, 1990.

2. Regulation 448 of the Revised Regulations of Ontario, 1990.

3. Regulation 450 of the Revised Regulations of Ontario, 1990.

4. Ontario Regulation 390/04.

Commencement

17. This Regulation comes into force on the later of July 1, 2012 and the day it is filed.